Investors of the Sovereign Gold Bond (SGB) 2017–18 Series-VII are set for a windfall as the Reserve Bank of India (RBI) announced a final redemption price of Rs 12,350 per gram, marking one of the strongest payouts since the scheme’s launch. The tranche, issued on November 13, 2017, completed its eight-year maturity on November 13, 2025, delivering a staggering 321% return over the tenure—excluding the additional 2.5% annual interest paid to bondholders throughout the period.
The maturity value was calculated based on the simple average of 999-purity gold closing prices published by the India Bullion and Jewellers Association (IBJA) for November 10, 11, and 12, 2025. Investors who subscribed to the issue at its original price of Rs 2,934 per gram, or Rs 2,884 per gram for online applicants, stand to earn more than four times their investment at maturity, underscoring the benefits of long-term participation in the scheme.
SGBs: Gold investment option by govt
Introduced in 2015, the Sovereign Gold Bond Scheme offers a digital, government-backed alternative to holding physical gold. Apart from mirroring gold price appreciation, the bonds provide a 2.5% fixed annual interest, paid semi-annually. With sovereign assurance, no making charges, and exemption from capital gains tax if held until maturity, SGBs quickly became one of the most popular gold investment avenues in India.
However, the scheme has now been discontinued for fresh issuances. The Government of India halted new tranches in 2025, a move confirmed by Finance Minister Nirmala Sitharaman during the post-Budget 2025 briefing. Officials indicated that soaring gold prices have significantly increased the government’s redemption liability—a key factor behind the discontinuation. As redemption values rise in line with market gold prices, the fiscal burden of paying out SGB holders has grown sharper.
New SGB issues
Despite the halt in new subscriptions, existing SGBs remain fully operational, allowing bondholders to redeem on the scheduled maturity dates or exit prematurely after five years, on interest-payment dates. As of March 31, 2025, the government had mobilised 146.96 tonnes of gold worth Rs 72,275 crore through 67 SGB tranches. By June 15, 2025, investors had redeemed 18.81 tonnes in gold-equivalent bonds.
For those still looking to invest, the secondary market remains the only route. SGBs listed on the NSE and BSE can be bought and sold through a demat account, though prices fluctuate based on demand, liquidity, and remaining maturity. Brokerage charges apply, and while the 2.5% interest continues for secondary buyers, the bond’s maturity does not reset. For instance, if an investor buys a Series-VII SGB in year five, they can only hold it until the original maturity date—three years in this case.
The last SGB issued was the 2023–24 Series IV in February 2024, priced at Rs 6,263 per gram. Previous tranches have also delivered substantial profits; for example, investors in the 2017–18 Series-V earned approximately 303% at redemption in October 2025.
As gold continues its multi-year rally driven by global uncertainty, rising central-bank purchases, and currency-hedging demand, interest in SGBs remains strong. While new bonds are no longer issued, the secondary market and existing holdings continue to offer investors exposure to one of the strongest-performing asset classes of the decade.